McEwen Copper Inc. Closes $40 million Private Placement with Rob McEwen
August 23 2021 - 6:00AM
McEwen Mining Inc. (NYSE and TSX: MUX) announces
that its subsidiary, McEwen Copper Inc., has closed the first
tranche of the Series B private placement offering announced on
July 6th, 2021 (the “Offering”), issuing
4,000,000
common shares at a price of
$10.00 per share for
gross proceeds of
$40,000,000.
Subscription for the remaining
4,000,000 common shares is available to qualified
accredited investors, subject to a $1 million
minimum investment and certain other conditions. The securities
sold in the Offering are private and subject to transfer
restrictions until after such time as shares of McEwen Copper
become listed on a public exchange. The second tranche of the
Offering is expected to close on or before September 30th,
2021.
Rob McEwen’s investment corporation, Evanachan
Limited, purchased all the shares issued pursuant to the first
tranche of the Offering. Following completion of the Offering, Rob
McEwen beneficially owns 18.6% of McEwen Copper, which holds a 100%
interest in the Los Azules copper project in San Juan, Argentina,
and a 100% interest in the Elder Creek exploration property in
Nevada, subject to a 1.25% net smelter return (NSR) royalty on both
assets payable to McEwen Mining.
McEwen Copper intends to pursue an initial
public listing within 12 months from the final closing of the
Offering. Proceeds from the Offering will be used exclusively by
McEwen Copper to advance the Los Azules project to a
pre-feasibility study, construction of a new year-round access road
to the project, infill and exploration drilling at Los Azules and
Elder Creek, environmental permitting and community relations, and
general corporate purposes. Construction of the new access road is
currently underway and has advanced 10 miles (16 km) of the
approximate 72 mile (115 km) planned length.
McEwen Mining is relying on the exemption set
forth in Section 602.1 of the TSX Company Manual, which provides
that the TSX will not apply certain of its requirements to issuers
whose shares are listed on another recognized stock exchange such
as the NYSE.
This news release and the information included
herein do not constitute an offer to buy or the solicitation of an
offer to subscribe for or to buy any of the securities described
herein, nor shall there be any sale of these securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
All amounts are in United States Dollars.
CAUTION STATEMENT CONCERNING
FORWARD-LOOKING INFORMATION
This news release contains certain
forward-looking statements and information, including
"forward-looking statements" within the meaning of the private
securities litigation reform act of 1995. The forward-looking
statements are intended to be subject to the safe harbor provided
by section 27a of the securities act of 1933, section 21e of the
securities exchange act of 1934 and private securities litigation
reform act of 1995.
This news release contains certain
forward-looking statements and information, including
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements and information expressed, as at the date of this news
release, McEwen Mining Inc.'s (the "Company") estimates, forecasts,
projections, expectations or beliefs as to future events and
results. Forward-looking statements and information are necessarily
based upon a number of estimates and assumptions that, while
considered reasonable by management, are inherently subject to
significant business, economic and competitive uncertainties, risks
and contingencies, and there can be no assurance that such
statements and information will prove to be accurate. Therefore,
actual results and future events could differ materially from those
anticipated in such statements and information. Risks and
uncertainties that could cause results or future events to differ
materially from current expectations expressed or implied by the
forward-looking statements and information include, but are not
limited to, effects of the COVID-19 pandemic, fluctuations in the
market price of precious metals, mining industry risks, political,
economic, social and security risks associated with foreign
operations, the ability of the corporation to receive or receive in
a timely manner permits or other approvals required in connection
with operations, risks associated with the construction of mining
operations and commencement of production and the projected costs
thereof, risks related to litigation, the state of the capital
markets, environmental risks and hazards, uncertainty as to
calculation of mineral resources and reserves, and other risks.
Readers should not place undue reliance on forward-looking
statements or information included herein, which speak only as of
the date hereof. The Company undertakes no obligation to reissue or
update forward-looking statements or information as a result of new
information or events after the date hereof except as may be
required by law. See McEwen Mining's Annual Report on Form 10-K for
the fiscal year ended December 31, 2020, and other filings with the
Securities and Exchange Commission, under the caption "Risk
Factors", for additional information on risks, uncertainties and
other factors relating to the forward-looking statements and
information regarding the Company. All forward-looking statements
and information made in this news release are qualified by this
cautionary statement.
The NYSE and TSX have not reviewed and do not
accept responsibility for the adequacy or accuracy of the contents
of this news release, which has been prepared by management of
McEwen Mining Inc.
ABOUT MCEWEN MINING
McEwen Mining is a diversified gold and silver producer and
explorer focused in the Americas with operating mines in Nevada,
Canada, Mexico and Argentina.
CONTACT INFORMATION: |
|
Investor Relations:(866)-441-0690 Toll
Free(647)-258-0395Mihaela Iancu ext.
320info@mcewenmining.com |
150 King Street WestSuite 2800, P.O. Box 24Toronto, ON, CanadaM5H
1J9 |
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